Expanding your SME to trade abroad can be a highly lucrative move, bringing in new clients, customers, business ventures and, of course, much needed revenue. However, each and every country is different, with its own set of rules, regulations, laws, cultures, languages and business practices. It is important to conduct proper research on any new country that you are planning to do business in. Below, we look at what you need to know about trading abroad as a SME.

Should you trade abroad as a SME?

You may have some questions as to whether your business is large enough or stable enough to be trading abroad. While, of course, no business should ever overreach its aims too quickly, there is never a ‘right’ time to start trading abroad.

Various studies and economists have said that the number of SMEs trading abroad is on the rise, and international trade is great for the home economy. If you have a wish or a desire to trade abroad, then do not let the size of your company limit you.

Support for trading abroad

The UK government recognises the importance of international trade, but also the struggles that SMEs may face as compared to large, corporate organisations. They offer several means of support for helping you to branch out abroad, such as with UK Trade & Investment (UKTI), formally replaced as the Department for International Trade in July 2016.

New documentation and laws

You will be faced with new documentation and red-tape should you choose to trade abroad. For example, if you’re looking to trade in the EU you will need to fill out an EC sales list, which is a list of your European sales (required for VAT reasons). While this is not always difficult or complicated, it represents a shift away from what you are used to, and it can seem daunting. Again, seeking support, such as with the link provided above, can help you in solving these issues.

Also take a look at this link on Import export services: Advice and guidance for further information on rules and regulations, intellectual property issues and how to develop your SME in a foreign market.

Rising costs

Expanding your business to begin trading abroad can be costly, especially for a SME. It can also be expensive and risky, thereby potentially limiting the financial support that you receive for your new venture.

But, there is a flip side to this. Successfully trading abroad can increase your revenues tenfold, and often you must take risks to reap the rewards. British SMEs are in a unique position that helps them to minimise the risks for trading abroad, which we will touch on below.

Language

One of these benefits is that the use of the English language is an important factor. Many businesses and countries around the world use English either as one of their primary languages, or as the main language for conducting business in. This will immediately put you on the front foot.

However, be aware that not all countries and businesses that you try to trade abroad with will use English, creating an immediate language barrier. Consider using a translator to help with business negotiations.

British goods

Another benefit of being a British SME is that UK-made goods are considered to be of an extremely high quality, and there is a global fascination with British culture, so this will automatically open up doors for you when looking to trade abroad.

As with the language issues above, there will of course be cultural differences as well, so be sure that you conduct thorough research on this beforehand, and consider employing or hiring locals to educate you and deal with any cultural differences.

Sufficient research within a new market in a new country should help to identify who the key players are for you, and from this you can develop your network and connections in the area.

Going digital

Going digital is a great way to trade abroad as a SME. With two billion people now online, the internet makes a great place to effectively trade abroad without having to deal with many of the potential issues. There will, of course, still be rules and regulations that you need to follow depending on the country you’re trading in.

The manner in which you communicate a message is just as important as the message itself. When we talk about the internal communication of a company we are usually referring to just how effective the communication really is.

If your communication methods fail to properly transmit your company’s actual and required goals to staff, the business will surely suffer as a result. And if you can accurately share your company values with your staff, you can be sure they will understand and act accordingly. The obvious and favourable result? The enduring success of your business.

These days, a vibrant and positive company culture can play a huge role in distinguishing your business from the competition. You can make this work in your favour, not solely by what you actually communicate to your team, but how you do so. Your absolute highest priority this year should be to bring out the best in your staff by inspiring them to higher levels of dedication and productivity.

The following practical strategies are meant to achieve this in the shortest time possible:

1. Keep the channels of communication wide open

Make it a rule that anyone is able to approach senior staff, no matter which department they work in or which supervisor they answer to. This should be nailed down in your internal communications system so that it serves as a fluid platform for healthy communication to take place across all sections of the company.

This approach helps employees feel encouraged to speak to one another, and does wonders to dispel the strangeness sometimes brought on by corporate formality. It means that your team will be able to quickly interpret the ideologies of the firm.

Potential issues with staff, grievances, and concerns can all be addressed quickly without causing disruption to usual activities. And the boosted team building that results from free flow communication in your company helps to keep productivity consistent as well.

Here are a few simple ways to quickly integrate improved internal communications at your company.

2. Your team is part and parcel of the industry

Business owners who like to play things close to the chest soon regret the approach and eventually have to involve staff in fixing bad decisions. People like to feel a part of something bigger, so sharing the goings on in your industry helps them feel they are contributing in a meaningful way.

You can keep your staff updated with the latest industry news at the touch of a button these days, and it also provides ample motivation at the start of each day. Let everyone be exposed to the inner workings of the industry and see how your company fits into the bigger picture. This will generate enhanced interest in the work that you do, and your team will feel like sharing what they learn both inside and outside the company. Your company will soon be regarded as a major player in your neck of the woods.

3. Celebrate your team members’ success through internal communications

The vast majority of employees agree that job satisfaction counts for as much as their total pay cheque, especially when they are acknowledged for their personal contributions made to your company. This is the opportunity to make a positive noise about it. Using internal communications to convey praise to your staff is a sure way to increase engagement and motivate a culture of achievement in your business.

It helps the larger staff component to want to strive for similar success, which in turn boosts productivity across the board. Sometimes it can be as simple as sharing the success of a particular department at your firm through a company-wide email or newsletter. But the resulting environment takes staff morale to higher and healthier levels.

4. Create channels for employee feedback

We are always concerned with what customers and clients think and say about the company, but we can neglect the valuable feedback that is lurking right there within company walls. A company that actively takes its staff members’ thoughts, ideas and suggestions into account is almost guaranteed to reap multiple rewards. The shift to constant improvement also demands that we are cognizant of staff experience and find creative ways to make each individual an active contributor.

So, why not use the existing internal communication platform as the perfect springboard to generating improved staff participation? You could make use of convenient chat software that will help capture ideas as and when they occur, directly involve any staff member no matter their designation, and promote improvement and participation at the same time.

5. Embrace the technology of the day

Most of the time your staff are too busy in their regular duties, so realistically you do not want your internal communications to become a distraction and hindrance to their work. We are quite lucky in this modern age to have numerous programs and software at our disposal.

When used correctly these are meant to make our life easier. So, in the same manner, your use of these software tools should be kept simple and streamlined. A few good software examples for enhanced internal communication are:

• Chat software – HipChat, Slack, and Hammer
• Cloud services – Google Drive and similar
• All in one Solutions – Microsoft for documents and email etc.

Here are five more innovative software solutions you should consider.

6. Inspire as well Inform

One of the chief goals of internal communication is obviously to inform staff members, but it can be used for so much more. Lack of motivation and encouragement leads to reduced productivity and neglect of duties. The very same system that you use to pass critical company messages to your staff can and should be used to inspire action!

There are so many ways to incorporate this idea to your existing communication. You can share motivational quotes, especially if they reflect your company’s vision. You could make it known that you are providing incentives and bonuses if certain objectives are met. And above all, you should learn to cleverly work in calls to action inside interoffice emails.

And if you want to streamline communications, even more, you could dare and do away with internal emails altogether.

By following these six innovative business communication tips and tools, you should see a marked improvement in your overall corporate culture and productivity.

If you have heard the term Digital Ethics lately and have been unsure about what exactly it means, you are not alone. There is a lot of debate, and many conflicting definitions out there on the web.

Read ahead to learn more about Digital Ethics when it comes to data breaches, your online persona and social media moderation.

 What are Digital Ethics?

Simply put, the term Digital Ethics refers to the way that one manages oneself online. This is especially important for people who handle sensitive information about clients online – in particular: doctors, therapists, lawyers and surgeons.

In order to be an ethical internet user, you must ensure that you are safely securing all information that you keep about others on your hard drives or software programs. Not only do you have to think about the ways that you store others’ information, you also must pay careful attention to the public persona that your online data trail is creating.

Finally, you must also ensure that any social media platforms that you manage or moderate are maintained in an ethical and sensitive way that is appropriate to your audience.

Digital Ethics – How do you manage your online persona?

In addition to the need to keep sensitive information secure, many people believe that the term digital ethics also refers to the public persona that one keeps online. That is, how do you appear to others when they search for you on the web?

For many people, that ill advised snapshot with a giant margarita taken on holiday is not the end of the world, but for certain professions (social workers, doctors, court judges and politicians) this type of photo would seem a tad unethical. The same could be said for certain bits of past biographies and personal details – it is worth paying attention to how you appear online.

Similarly, if you are scrolling through Facebook and you happen upon photos of your doctor or surgeon partying like mad the night before an important appointment, you might be frustrated and angry. The same could be said if you encountered a vitriolic diatribe written by a professional about your race, gender or ethnicity.

Professionals have an ethical duty to not only protect your data, but also to ensure that their own public information is presented in a positive and sensitive manner. No matter who you are and what your line of work, pay special attention to the things that you post online – even if you think that they are private, one of your many followers could be hacked and your photos, statuses and other links could become public business very easily.

Is your stored information safe online?

Increasingly, we live our lives online. From our banking details to booking a hotel, from planning a surprise party for our spouse to investing in the stock market – we regularly enter our sensitive, personal information into online forms and websites. Not only do you need to think about how you appear online, you also must take careful measures to protect both your own and others’ sensitive information.
On an increasingly regular basis, we see stories in the media about the devastation that occurs when supposedly secure websites are hacked and individuals’ sensitive information is leaked online. This can encompass personal banking details, home addresses and other data, but it can also include photographs and private medical information.

Just imagine if your doctor’s surgery did not have a policy in place to protect your medical history? Nefarious individuals could gain access to knowledge about personal mental health information, potentially embarrassing diagnoses and family backgrounds, and this would be unethical.

Who is to blame when information is hacked?

What if your talk therapist had his or her digital notes hacked, or if your financial advisor had their website breached – who would be to blame? While the criminal doing the hacking is certainly in the wrong, the individual or organisation that has been storing your information certainly has some responsibility for the matter.

Lawsuits and court cases have emerged in recent years debating this exact issue –when valuable details are released into the public sphere, who should be the one held accountable? This question has led to an entirely new field of inquiry – academics and practitioners alike are investigating the need for Digital Ethics when it comes to data hacks.

Digital Ethics and Social Media – Netiquette

Social media is another very important consideration in the conversation about Digital Ethics. As more and more corporations are expanding their online media presence, it is important for them to have a firm policy on how to handle certain social media problems that can arise.

For instance, if an abusive or bullying ‘flamewar’ breaks out between two (or more) of your customers on your Facebook page, how do you handle this? What does your organisation define as an appropriate image or message to tweet, and do these standards apply to retweets? What kind of personal information do you want your employees to share if your organisation’s name is a displayed on their Facebook page?

All of these things are important to consider when planning your online media profiles. You can create guidelines that apply across all of your platforms, and ensure that the staff members in charge of updating them follow these carefully.

Similarly, when clients message you on social media via a private message, they are owed a reasonable expectation of privacy and care. Ensure that these inboxes are regularly checked, dealt with and then deleted in a timely fashion.

No matter who you are or what business you are in, your online digital ethics are important, and something that you should be mindful of when using the internet.

 

On the 6^th April 2016, new guidance came into effect for companies and limited liability partnerships (LLPs) for registering people with what is termed ‘significant control’. The PSC register requires companies and LLPs to hold a register of those people who have a say over how they operate. This includes any individual that holds 25% or more of the shares in a company, 25% of the votes, or any other right to exert influence on the business. This effect can be either through direct or indirect means.

The change in law means that organisations have to register those with such interests and failure to do so could result in criminal convictions and possible fines. The legislation guidance issued outlines what individuals and legal entities need to do to comply with the legislation and what it means.

For instance, details of the PSCs will need to be registered with Companies House on the new Annual Confirmation Statement and the information can be accessed by the public free of charge. The company will also be required to allow those with a legitimate interest to inspect the PSC register at their office, for a small fee.

Why Has the PSC Register Been Introduced?

It’s hoped that the introduction of a PSC register in conjunction with the Small Business Enterprise and Employment Act 2015 will create greater transparency, helping to combat problem areas such as terrorism, money laundering and tax evasion by showing who actually owns or has control over a particular organisation. It follows on from an EU ruling in 2015 under the Fourth Money Laundering Directive that member states need to implement before 2017.

Who Needs to Register?

If you are an individual who meets any of the following requirements, then you will need to be entered on the PSC Register:

1. You have 25% of the shares of the company, held either directly or indirectly.
2. You have 25% of the voting rights of the company, either directly or indirectly.
3. You have the right to remove and appoint most of the directors in the company, either directly or indirectly.
4. You have the right to exercise influence or control over the company.
5. You have the right to exercise influence or control over the company via a trust or firm or other entity in a way which would satisfy the four terms above.

Not all companies will have individuals that meet the requirements for going on the PSC register, though you may wish to seek the appropriate clarification as to what your status is. One area where confusion might arise is that the PSC is perceived to be intended for individuals to register rather than legal entities such as a particular company or LLP. However, if a legal entity is itself required to maintain a PSC register then it must be entered into the PSC register of the company in which it exerts significant control.

Who Doesn’t It Apply To?

The PSC register doesn’t apply to those companies that are subject to DTR 5 requirements and those that have voting shares which are admitted to share trading on an EEA regulated market (other than the UK) or other specified markets. The reason for this is that these companies already have to make disclosures and the register would be seen as a duplication.

When Do You Need to Register By?

Companies are required to begin keeping a PSC register from April 2016 and that information needs to be filed with Companies House by the end of June 2016.

What Happens Next?

If you are an individual or legal entity that needs to go onto a PSC register, then you can contact the company directly and offer your details. If you have not done so, then the company will contact you to ask for the details. Failure to provide these without a valid reason could mean you are guilty of a criminal offence and lead to prosecution. If the company has failed to contact you and you know that you are a person with significant control you must supply your details to the company. Again, failure to do so can lead to a criminal conviction.

The company will need to register which of the five requirements a particular PSC meets. For instance, if they have more than 25% of the voting rights then the company will need to note the extent of the holding. Details that are recorded will depend on whether it is an individual or a registerable legal entity. The exact nature of what should be included and excluded in the register is routinely under review and may well include more in the future. Normal information that will be included are name and address, date of birth and nationality and whether there are any restrictions on disclosing your PSC information.

Timelines for Responding

A company must actively seek out PSCs and ask for their information. If someone has not volunteered their information, the company must send a notification within 1 month of finding out that they are a PSC. The person receiving the notification then has 1 month further in which to reply.

If you do not reply in a timely manner, then the company can issue a warning and put restrictions in place, including your ability to sell shares and stipulate that no rights in respect of your interest can be exercised.

Keeping Information Up-to-Date

The onus is on the PSC to inform the company that there has been a change in their status whether that is the possession of more shares or their no longer meeting the PSC requirements, necessitating removal from the register.

Where is the PSC Register Kept?

The company must keep its own register accessible and anyone with a proper purpose can access it for a small fee of £12.

The information must also be filed with Companies House and this will be available on the central public register. This will also be made available to law enforcement agencies. A private company can also choose to keep its own register at Companies House but must inform all PSCs that it is doing so.

Finding PSC Information

The Government has produced a good deal of guidance for companies to enable them to register PSCs and you can view this on their website. All companies with PSCs need to make sure that they have registered interests and logged their information with Companies House by 30^th June 2016.

If you are involved in a family business, you know better than anyone about the intense mixture of pride, responsibility and family honour that goes into a simple day at the office. Of course, independent entrepreneurs also face stresses and challenges, but there is something uniquely high pressure about running a company in which your entire family (and in some cases, your heritage and ancestral history) are invested.

Studies have shown that family run businesses tend to outperform others over the long run – this can truly be a brilliant way to operate an enterprise of any size.

While an average business person has to worry about keeping their own career on track and giving their employees the best opportunities possible, a family business owner must do all of this – and keep the family’s livelihood and good name afloat. It isn’t easy – but of course, it comes with great rewards.

Business people who are involved in family owned and operated enterprises will usually have the advantage of a built in support system and a team of people who are intrinsically connected to and concerned with the success of the business in a way that average employees are not.

As you can see, the issue is far from cut and dry. If you are considering entering into your own family business, read ahead to assess a list of pros and cons that may help you to decide just how involved you would like to get with your own kith and kin.

Should you Enter into a Family Business? – Pros and Cons

PROs

• Loyalty – As mentioned above, your family (providing that they are a supportive and generally well balanced lot) will often be loyal to you in a way that hired employees can never hope to match. You will usually not have to worry about them taking meetings with competitors behind your back, spilling trade secrets to their friends and handing in two weeks notice at the busiest time of year.
• They are invested in the business and will work hard – As their own name and profits are invested in your brand and business, everyone involved in a family business is likely to give their all every single day. It can be difficult to get motivated to help a faceless corporation succeed; your family members will not have this problem, as everything they do contributes directly to their own pocketbooks and bank accounts.
• They’ll be honest (brutally so) when needed – If you own a small to medium sized enterprise and are surrounded by hired employees, management and assistants, you may not be getting the most honest opinions when you ask for them. No matter how much your team respects you, they are still your subordinates and there is an innate power dynamic built into the relationship that might prevent them from telling you how they really feel about your ideas. Your brother/sister/cousin/niece/father is far less likely to smile and nod when you suggest an idea that they regard poorly. Their critique and honest feedback can be the difference between launching an unsuccessful initiative and putting some more research and time into the strategy.
• Family is more likely to be flexible – Do you need to occasionally bring your little one or even your pup to the workplace? Need a last minute day off in order to take your child to the doctor? Feeling poorly and want an extra day at home to nurse yourself back to health? Chances are, your family members are more likely to be flexible and understanding when it comes to personal matters and childcare emergencies.
• You will save money on recruitment and limit turnover – As your family grows over the generations, you have a built-in talent pool! That’s right, recruitment can become very simple when you are selecting most candidates from within your family tree. Your nieces, nephews and children are also less likely to leave you in the lurch, which means that your turnover will be a lot lower than your competitors. In addition, many of the children in your family will grow up enmeshed in your industry, meaning that they will understand your business in a deep way that others can never parallel, and they will need far less training.

CONs

While your family members have financial and pride investments in this business, they may also feel comfortable enough to let some of their more negative traits shine through. This can lead to complacency (“I can’t lose this job – it belongs to me and my family!”) and a sense that they don’t have to work hard every day. Worst case scenario is that other hired employees see this behaviour and begin to mimic the bad example.

• Family baggage can cause conflict – Let’s face it – we all have conflict in our families. Whether someone is still holding a grudge from 1989, or the baby of the family always feels judged – there are countless points for potential clashes. The key to avoiding this is getting it all out in the open and agreeing to leave personal grievances at the door – this is business, and getting into petty skirmishes (no matter how emotional and urgent they feel) will hinder your bottom line.
• You can get stuck in a rut – By keeping most senior positions within your family, you risk getting stuck in a creative rut, as most of the people you will be working with have a similar background and point of view. Ensure that you mix things up and hire consultants and management from outside your inner circle.

 

Whether you choose to strike out on your own, start a new family business with your brothers, sisters and cousins or commit and join a long established familial firm, the differences between family run businesses and independent entrepreneurship are many. It is up to you to weigh the pros and cons and choose the option that works best for you.

 

If you are a small business owner, you undoubtedly have a lot on your mind – it takes a lot of time and energy to juggle your career, your family, bookkeeping, recruitment and a plethora of daily management tasks. While you are leading a busy and hectic life, there is definitely one more concern that you should be directing your time and energy towards – protecting your data.

While the Internet can be a valuable tool that can help any small business to succeed and thrive in today’s technology driven world, it can also be a dangerous platform that gives rise to thieves, hackers and criminals run roughshod. These skilled cyber criminals are looking for – and sometimes even going to great lengths to create – holes in security through which they can access your important information.

What kinds of data are they looking for?

Most of the data that you store on your computers, hard drives and Internet based cloud storage is banal; seasoned Internet criminals are unlikely to be interested in the information generated by your daily business dealings. After all, cabinet measurements or clothing orders are not very interesting to anyone, let alone a criminal searching for profit!

The two most common types of data that criminals are looking for include (but are not limited to):

• Payment information: this can include credit card numbers; bank account details (branch, transit and account number); direct debit information; money order numbers; traveller’s cheque information; information about bonds; gift card numbers; and anything else remotely related to payment. While you may think a few strings of numbers are meaningless, to a seasoned cyber criminal they can be a gold mine.

• Personal information – Credit card numbers, while of obvious value, are not the only desirable information you have stored in your computer files. Personal information is very valuable to a certain type of cyber criminal; simple things such as a full name, National Insurance number, home address, home telephone number, mobile number, date of birth and country of origin can all be used by a savvy hacker in order to conduct identity theft.

Identity Theft can ruin your business and destroy your credit – forever

Identity theft is so much more than simply someone impersonating you online for laughs; it can destroy your credit, ruin your reputation and change your life forever. Criminals who have accessed your personal information – or your customer’s personal information – can wreak havoc on your life. They can use this information to:

• Open bank accounts in your name
• Apply for countless lines of credit and credit cards using your details
• Take over any existing accounts that you have
• Raise your credit limits on multiple accounts
• Purchase consumer goods on credit in your name
• Obtain governmental benefits (i.e. go on the dole or receive disability allowance) with your information
• Access safe deposit boxes you may have in your name
• Apply for and receive passports, driving licenses, birth certificates and other official documents that will further solidify their claim on your identity

You can see how absolutely devastating identity theft can be for an individual – now imagine if your business was the ground zero of an information leak involving thousands of your customers? Your name could get dragged through the press, and you would undoubtedly lose countless clients – and a lot of business. A data leak could ruin your enterprise forever.

So, what can you do to protect your data – and the data of your valuable customers?

Now that you are clear about the devastating effects that a data breach could have on your business – and on the bonds of trust you have built with your clients, is there anything that you can do to protect your business from cybercrime? Thankfully, the answer is yes.

Here are three simple ways that you can ensure your small business’s data – and the valuable data of your customers – is safe from a potentially career ending breach.

1. Educate your employees – Employee error – this is one of the most common ways that data security breaches occur. Even if you think your employees are fully versed in online security, your front line staff – the ones who are regularly answering emails, logging in online and accessing your software – are most likely the weak links in your security plan. Countless studies point to the fact that poorly trained staff members are more likely to fall prey to online ‘phishing’ schemes (fraudulent websites designed to look and feel identical to official sites) and other cybercrime tactics – in order to prevent this, you need to provide regular comprehensive training on how to spot security scams.
2. Use a reliable antivirus program – While no antivirus program can keep you completely out of harm’s way, a good malware security system can help to prevent security breaches caused by backdoor access, keyloggers and other nefarious programs. These programs are worth you time – and yes, definitely worth your money, as they will save you in the long run.
3. Use unique passwords for every site – Do you use the same easy to remember password for your online banking, accounting software and email accounts? If your answer is yes, you are putting your customers – and your business – in jeopardy. If your password gets leaked (if another business has a data breach) and you don’t realize this has happened, all of your accounts are in jeopardy, rather than just one. Don’t risk it – use strong, unique passwords for all of your important online accounts.

Now that you know just how important online security is when it comes to your business’s success, hopefully you will take the correct measures to ensure that your data is safe, protected and out of the reach of cyber thieves. While no online system is impervious to theft, your clients can rest assured that you have done everything within your power to secure their data – and their peace of mind.